SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Corel - What is the deal with this company?

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dinh Hai Tran who wrote (181)8/1/1996 4:13:00 AM
From: Skye   of 347
 
Thanks for keeping the discussion alive. A few points:
1. 600 Orem, UT employees x 90k is 54 mil (as you say) + $12 mil for rent, etc. + on average $40 million a year for advertising on WP products alone + $40 million for what they paid Novell (I am using 40 million as $160 million which they paid them viewed as 40 million for the next 4 years) = a total yearly expenses for the next 4 years of about 150 million PER YEAR. If Corel makes about $50 on a WP upgrade box (non-OEM), this means Corel must sell at least 3 million copies this year, the next year, the following year, and the fourth year JUST TO BREAK EVEN! I really don't know how many copies they will sell, but if we see it looks like they will sell 3 million copies this year and next year, then I think there is nothing to worry about in that they will more than break even. I am figuring this because they will also make on average probably a few tens of millions of dollars for the next 2 or 3 years on the OEM versions.

Also, their new Internet products are getting good reviews, Ventura is getting great reviews as is CorelVideo. Also, although costing only $25, Corel PrintHouse has been one of the top-5 selling CD roms for THE LAST 6 MONTHS!

I am a believer, and I think they will pull through.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext